Pay rates for junior City staff start to rise aggressively
Pay rates for junior City staff start to rise aggressively - Average increase of 12% for basic salaries
The average pay for junior City staff has risen aggressively over the summer says Astbury Marsden, a leading financial services recruitment firm.
According to Astbury Marsden, average base salaries for City workers at Assistant Vice President (AVP) level have increased by 12% from 62,945 to 70,480 over the last year.
Up until the last three months more junior staff have seen their pay lag behind that of senior City staff.
Astbury Marsden explains that the more senior staff in investment banks have had their basic salaries increase by between 20% and 50% over the last year. However, much of that increase has been part of a shift away from bonuses.
Jonathan Nicholson, Managing Director at Astbury Marsden, says: Up to now the big jumps in pay created by the recovery in City recruitment have gone to the more senior staff.
Banks and fund managers have focused on getting in the more experienced staff that have portable client bases, the proven rainmakers and those with real rare niche skills that take years to develop.
The salary inflation largely passed junior staff by but now those lower down the pyramid are starting to see their wages grow significantly.
Jonathan Nicholson says that one of the reasons why wages are rising so quickly for those staff with below four years experience is that banks and financial institutions are now beginning to suffer from shortages created by the cancellation of graduate and MBA intakes during the credit crunch.
Adds Jonathan: There is a serious shortage of junior salespeople, analysts, and other support functions and banks and fund managers are now having to pay through the nose to get them.
Jonathan Nicholson says that these wage increases are not taking place through company wide pay rises but through a series of one off pay increases either to attract or retain individuals and teams.
Says Jonathan: The junior staff have been pretty much ignored up until six months ago and whilst all the banks are looking at keeping their compensation ratio lean they need to deal with a rise in business volume as summer ends.
*Job titles may differ between organisations but Vice-Presidents or Director have, on average, over six years experience. Staff will normally be appointed Assistant Vice-Presidents with three to four years experience.